The C7 was actually developed at the same time as the M16A2, and is a bit of a hybrid of various M16 models (i.e. M16A1 rearsight, and full-auto capability, but A2 style heavy barrel, long butt and handguards).
A removable carrying handle/flat top receiver is a feature of all C7s and C8 carbines, and therefore Elcan optical sights or Aimpoint red dot sights are often fitted.
The C7A2 with adjustable stock has now been introduced to the Canadian version. To make things easy a different C7A2 is now being introduced to the Dutch armed forces. It features an adjustable stock; four rails on the barrel to attach various things to (a foregrip with collapsable bipod; a lamp; etc...); a longer rail on the body; ambidextrous fire selector and magazine release button. Combat units will get an aimpoint with attachable sight and the foregrip / bipod. This C7A2 version will feature all adaptations when handed to infantry and cavalry recce units; combat support and support arms will not get all attachable items such as the aimpoint and foregrip / bipod. Introduction is expected in 2011.